Industry Report: Finished Food Products in Indonesia

The food and beverage sector in Indonesia offers vast opportunities for Swiss food producers or suppliers. It is expected that the food and beverage sector’s turnover will rise to USD 108 billion in 2017, which would be an eight percent increase from the previous year. The large population with 260 million inhabitants and continuous growing middle class has increased food demand and a higher consuming lifestyle.

The food and beverage sector in Indonesia offers vast opportunities for Swiss food producers or suppliers.

Based on Nielsen’s consumer confidence index and Indonesia’s statistics, it is very likely that Indonesian consumers will continue to spend more on goods and services. Around 48% of monthly expenditure per capita is spent on food. Compared to commodity food products like grains, meat, seafood, eggs and milk, Indonesian consumers spend more for prepared food and beverage.

Rising demand for western food

Eating is viewed as an important part of the Indonesian culture. Variety of cuisines such as local, Asian and western style food can be found in the food service industry. Recent Indonesian consumers’ eating trends are the rising demand for western food, ready meals, frozen and processed food as well as eating healthy food for most young and educated consumers. These types of food are already marketed in modern retail stores such as hypermarkets, supermarkets and convenience stores, which are available and scattered throughout major cities. It is predicted that in 2050 two-thirds of Indonesian population will be living in urban areas, hence, this would be regarded as a huge potential for food suppliers.

One of the strengths of the food and beverage industry is the established number of modern retail stores in the country. As of 2016, there are around 29,600 convenience stores, 300 hypermarkets, and 1,400 supermarkets. In 2016, the retail sales of baked goods, dairy products, confectionery, processed meat and seafood as well as sweet and savory snacks have recorded a staggering USD 10.1 billion. The sales for these food products are expected to continually increase until 2021.

The rising number of café and restaurants as well as the tourism sector in Indonesia have also supported the development of the food and beverage industry.

Swiss premium brands like Emmi, Kägi, Lindt, Ricola and Toblerone are present on the shelves, yet there is still great potential.

This market study focuses on the food and beverage industry in Indonesia. It provides an overview of the Indonesian economy and looks into the specific market information for finished food products. With that being said, the report shows business opportunities and challenges for Swiss companies in entering the Indonesian market.

Report: customer, competitor and distribution analyisis

This market report provides an analysis on customers, competitors and the industry as well as distribution channels are covered. Other information which are also covered are the characteristics of the sector, market size and structure, major players, market trends and projections.